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Equine Regulatory Law Seminar Handbook

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Equine Regulatory Law Seminar Handbook The Kentucky Bar Association Equine Law Section presents Equine Regulatory Law: An End of the Year Update CLE Seminar This program has been approved in Kentucky for 3.00 CLE Credits including 0.00 Ethics Credit. Compiled and Edited by: The Kentucky Bar Association Office of Continuing Legal Education for Kentucky Bar Association Equine Law Section © 2012 All Rights Reserved Published and Printed by: The Kentucky Bar Association, November 2012. Editor’s Note: The materials included in this Equine Regulatory Law seminar book are intended to provide current and accurate information about the subject matter covered. The program materials were compiled for you by volunteer authors. No representation or warranty is made concerning the application of the legal or other principles discussed by the instructors to any specific fact situation, nor is any prediction made concerning how any particular judge or jury will interpret or apply such principles. The proper interpretation or application of the principles discussed is a matter for the considered judgment of the individual legal practitioner. The faculty and staff of the Kentucky Bar Association disclaim liability therefor. Attorneys using these materials or information otherwise conveyed during the program, in dealing with a specific legal matter, have a duty to research original and current sources of authority. Equine Regulatory Law CLE Seminar Table of Contents Agenda .................................................................................................................. i Speakers .............................................................................................................. iii Private Sales, Auction Sales and "Transparency"................................................. 1 An Analysis of Thoroughbred Parimutuel Racing Regulatory Rulings Issued as a Result of Drug/Medication Rule Violations .................................................. 19 Equine Regulatory Law: 2012 – The Year in Review .......................................... 23 Appendix A: Dutrow v. New York State Racing and Wagering Board ................. 33 Appendix B: Moreno v. Penn National Gaming, Inc. ........................................... 37 Appendix C: Hearing Officer's Report and Recommended Decision in the Matter of: The Ejection Appeal of Mark Wedig .................................................... 51 Appendix D: "Trainer Pleads His Case on Anti-Slaughter Policy" ....................... 67 Appendix E: Sample Anti-Slaughter Policies ...................................................... 73 Appendix F: Veitch v. Kentucky Horse Racing Commission ............................... 77 Equine Regulatory Law CLE Seminar November 15, 2012 Kentucky Derby Museum Louisville, Kentucky 8:00-9:00 a.m. Registration & Continental Breakfast 9:00-10:00 a.m. Legal & Case Law Developments: Update on Horse Sales & Auctions (1.00 CLE credit) Alfred H. Nuckols, Jr. 10:00-11:00 a.m. Legal & Case Law Developments: Update on Drug Laws & Regulations on Race Day and Every Day (1.00 CLE credit) Matt F. Iuliano 11:00-11:15 a.m. Break 11:15 a.m.-12:15 p.m. Equine Regulatory Law: 2012 Case Law Review (1.00 CLE credit) Robert L. Heleringer 12:15-12:30 p.m. Break 12:30-1:30 p.m. Luncheon Presentation of the First Annual Edward S. "Ned" Bonnie Award to the Equine Law Practitioner of the Year Special Recognition of Mr. Fred Bradley by the KBA Equine Law Section i ii SPEAKERS Alfred H. Nuckols, Jr. Hurstland Farm Post Office Box 741 Midway, KY 40347 859.846.4435 Alfred H. Nuckols, Jr. is the owner/manager of Hurstland Farm, a commercial breeding, boarding and sales operation in Central Kentucky near Midway. He received his B.A. from the University of Pennsylvania and his J.D. from the University of Kentucky College of Law. He is a member of the Kentucky Thoroughbred Farm Managers Club, the Thoroughbred Club of America, and the Keeneland Club. Mr. Nuckols is also a member of the Kentucky Bar Association and its Equine Law Section. Matt F. Iuliano Executive Vice President & Executive Director The Jockey Club 821 Corporate Drive Lexington, KY 40503 859.224.2721 Matt F. Iuliano became the Executive Vice President and Executive Director of The Jockey Club, the breed registry for all Thoroughbred horses in North America, on January 1, 2008, after serving more than eight years as the organization's Vice President of Registration Services. Mr. Iuliano oversees all matters concerning The American Stud Book and represents The Jockey Club as it interacts with national and international industry organizations and committees. Prior to joining The Jockey Club, he served in several executive capacities at Churchill Downs Incorporated over twelve years. Prior to joining Churchill Downs, Mr. Iuliano spent seven years as director and operations manager of Lasma East, the largest and most recognized Arabian horse farm at the time, in LaGrange, Kentucky. Mr. Iuliano received his B.S. and M.S. from Colorado State University and his M.B.A. and J.D. from the University of Louisville. iii Robert L. Heleringer 7982 New LaGrange Road, Suite 1 Louisville, KY 40222 502.327.6787 Robert L. Heleringer is an attorney in Louisville and currently serves as Chair of the KBA Equine Law Section. He has been an Adjunct Professor in the University of Louisville's Equine Industry Program since 1999 and for Midway College since 2011. From 1980-2002, Mr. Heleringer served in the State House of Representatives, representing the 33rd District, where he was Vice-Chair of the House Judiciary Committee, Chair of the House Appropriations & Revenue Committee, and Co-Chair of the Family Court Task Force. Mr. Heleringer worked as a racing official at racetracks in Kentucky, Maryland and New Hampshire from 1973-1976 and in 1986. He received his A.B. from Xavier University and his J.D. from the University of Louisville. He is a member of the Thoroughbred Owners & Breeders Association and participates in the Louisville Legal Aid Society's Volunteer Lawyer Program. He also serves on the Board of Directors for Catholic Charities in Louisville, and the Legislative Affairs Committees for Day Spring and K.E.E.P. Mr. Heleringer is a member of the Kentucky Bar Association, and recently authored the textbook Equine Regulatory Law. iv PRIVATE SALES, AUCTION SALES AND “TRANSPARENCY” Alfred H. Nuckols, Jr. I. Private Sales and Purchases………………………………………………….1 II. Public Auction Sales……………………………………………………………2 III. “Transparency” at Public Auction Sales………………………………………4 Appendix 1. Sample “Purchase Agreement and Bill of Sale”………….………………....7 2. Consignor and Commercial Breeders Association “Uniform Sales Contract”…………………………………………………....11 I. PRIVATE SALES AND PURCHASES A. Caveat Emptor – Let the buyer beware, but beware of what? B. Private Sale Agreements generally make no warranties and specifically exclude all warranties, express or implied and all warranties of fitness for a particular purpose, i.e. racing or reproductive. C. Remedies 1. Physical inspection. 2. Veterinary inspection. a. Racing: i. X-rays of joints. ii. Endoscopic examination of throat. iii. Physical soundness exam to trot. b. Breeding. Compiled by Shannon Arvin, Stoll Keenon Ogden PLLC, using a number of the top twenty consignors’ contracts as a reference. (Please note that the Conditions of Sale, Consignor’s Contract and Authorized Agent form for the designated sale are to be included as “Exhibit B” when using this agreement.) 1 i. If not pregnant: a) Uterine culture. b) Speculum exam of cervix and vagina. c) Uterine biopsy. ii. If pregnant: a) Manual palpation of uterus. b) Ultrasound examination of pregnancy. Can be fetal sexed between sixty- five and seventy-five days D. Jockey Club Certificate of Foal Registration 1. Contains a description of the horse, giving date of birth, color, pedigree and a description of all physical markings; contains a history of all races won, the type of race and its value. 2. Racing stock cannot be raced without certificate and the animal is worthless for purposes of racing because papers must be presented to the Racing Secretary at a given track before the horse can be entered in a race. 3. Breeding Stock cannot be sold at public auction without certificate and with private sales it will be a necessary requirement. E. Jockey Club Stallion Service Certificate In-foal mares cannot have their prospective offspring registered with The Jockey Club without presenting certificate to The Jockey Club for registration of the foal. II. PUBLIC AUCTION SALES A. Consignor – Owner Agreement (see Appendix for sample form) B. Sales Company Consignment Contract 2 1. Entry fee and commission rate for seller set. 2. Delivery of Jockey Club Certificate of Foal Registration, Stallion Service Certificate, Coggins, EVA and other required veterinary test results, and required health certificates required. 3. Delivery to sales grounds by time specified by Auctioneer/Sales Company. 4. Auctioneer/Sales Company remedies for failure to perform above duties by Sellers include right of refusal to sell or withholding sales proceeds. C. Sales Company Conditions of Sale (2012 Keeneland September Yearling Sale Catalog) 1. Anabolic steroids (Condition 11). Strictly prohibited within forty-five days of sale for yearlings and weanlings 2. Condition of wind (Condition 10). Applies to all horses which have not raced and which are sold as racing prospects after July 1 of the yearling year 3. Disclosure of eye conditions, cribbers, cryptorchids and wobblers (Condition 9). 4. Transfer of title and risk of loss
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